CWT Ltd : CWT Globelink Acquires 34.24% Shareholding Stake In Fallow International Freight Limited

CWT Limited Tel: (65) 62626888

Corporate HQ Fax: (65) 62612373

38 Tanjong Penjuru Email: e-mail@cwtlimited.com CWT Logistics Hub 1 Website: www.cwtlimited.com Singapore 609039 RCB Reg. No.: 197000498M

All business is transacted only in accordance with the Singapore Logistics Association Standard Trading Conditions. A copy is available upon request.

ANNOUNCEMENT

CWT Globelink Acquires 34.24% Shareholding Stake in

Fallow International Freight Limited

I. Share Sale and Purchase Agreement
The Board of Directors of CWT Limited (the "Company") today announced that CWT Globelink Pte Ltd ("Globelink"), a wholly-owned freight logistics arm of the Company, has entered into a Share Sale and Purchase Agreement ("SPA") to acquire a 34.24% stake in Fallow International Freight Limited ("Fallow") from the existing shareholders of Fallow for a total purchase consideration of GBP
616,320 ("Consideration") (collectively the "Acquisition").
Fallow is a leading sea freight forwarder specialising in Less Than Container Load (LCL) consolidation in the United Kingdom (UK). It counts some of the world's largest freight forwarders as its valued customers and offers substantial direct and comprehensive service coverage in and out of many ports in the UK. Prior to the Acquisition, Fallow has been part of Globelink's global agency network for more than 17 years.
Upon the completion of the Acquisition, Fallow will be renamed as Globelink Fallow Limited.
II. Rationale
The Acquisition will add strategic competencies and business network to Globelink and Fallow. Globelink will be able to tap on Fallow's strong local market knowledge and active business relationships with many common agents within Globelink's group of agency network to gain a stronger foothold in major ports in the UK. The expanded global network in Europe will translate into better value-add and service coverage to Globelink's customers, especially the international freight forwarders, and continue to strengthen Globelink's turf beyond Asia to retain its market competitiveness. For Fallow, it would mean the opportunity to join a global group and leverage on Globelink's global network for greater growth.
III. Consideration
The Consideration has been determined on a willing-buyer-willing-seller basis, and takes into account the track record of Fallow, its management strength and capabilities, its business network and customer relationships, the results of the financial due diligence and the Company's assessment of the business and prospects of Fallow, including its potential synergy with Globelink's group of companies.
Under the SPA, the Consideration is payable as follows:
- GBP 316,320 in cash upon completion of the Acquisition
- GBP 300,000 in cash to be paid progressively following the Acquisition upon achievement of agreed profit after tax milestones
The SPA also includes a Call and Put Option for Globelink to exercise to gain a further 16.76% stake in Fallow anytime after three (3) years from the completion date of the Acquisition.

V. Financial Effects
Funded by internal funds and borrowings, the Acquisition is not expected to have any material impact on the Company's earnings per share and net tangible assets per share for the current financial year ending 31 December 2012.
VI. Interest of Directors and Substantial Shareholders
None of the Directors or substantial shareholders of the Company have any interest, direct or indirect, in the Acquisition.
VII. Documents for Inspection
In the meantime, a copy of the SPA is available for inspection at the registered office of the Company at 38 Tanjong Penjuru, CWT Logistics Hub 1, Singapore 609039 during normal business hours for a period of three (3) months commencing from the date of this Announcement.
By Order of the Board
Lye Siew Hong - Lynda Goh
Company Secretary
CWT Limited
6 February 2012

About CWT Globelink

CWT Globelink is a global leading, neutral ocean freight forwarder and consolidator of Less Than Container Load (LCL) cargo. It offers Container Freight Station (CFS) operations, Dangerous Goods (DG) cargo handling, sea-air and buyer's consolidation, among other general freight forwarding services. Since its inception in 1988 in Singapore, CWT Globelink has expanded its global network to more than 100 offices in 25 countries. It is also a founding partner of the Global Consolidator Alliance (GCA), formed together with key members of its agency network to provide comprehensive and seamless global coverage as well as high quality consolidation services to its valued customers. CWT Globelink is the freight logistics arm and a wholly-owned subsidiary of the CWT Group. For more information, visit www.cwt-globelink.com.

About CWT Group

CWT is a leading provider of integrated logistics solutions for worldwide customers in the commodities, chemical and petrochemical, marine, oil & gas, defence and industrial sectors. CWT designs, engineers and manages unique and effective supply chain solutions leveraging its in-depth domain knowledge, innovative capabilities and global logistics infrastructure. Through its global network, the CWT Group is able to connect customers to 120 ports and over 1,200 destinations seamlessly around the world. Headquartered in Singapore, the CWT Group also engages in coal and base metal commodity supply chain management and provides engineering management and maintenance services for facilities and vehicles and equipment fleet as well as financial services through the asset management of Cache Logistics Trust and brokering services for futures and derivatives trades. One of the largest listed logistics companies in Southeast Asia, CWT is traded on the Singapore Stock Exchange under the stock symbol CWT. For more information, visit www.cwtlimited.com.

For more information, contact:

CWT Limited

Lynda GOH Johan LIM

Deputy Group CEO & Group CFO Corporate Communications Manager

Email: shlynda@cwtlimited.com Email: cbjohan@cwtlimited.com

Tel: (65) 6307 8338 Tel: (65) 6307 8018

Fax: (65) 6261 2373 Fax: (65) 6261 2373